HOUSINGNEWS REPORT
FEATURED ARTICLE
COUNTIES WITH MOST OUT-OF-STATE SFR OWNERS
88,947
Maricopa, AZ Clark, NV Lee, FL Cape May, NJ
73,629
33,515
27,007
22,523
Wayne, MI Shelby, TN
20,107 19,640 19,608 19,131 18,821
Harris, TX Sevier, TN Sussex, DE Palm Beach, FL Pima, AZ
17,871 17,834 17,525 17,017
Mohave, AZ Sarasota, FL
Cumberland, TN Mecklenburg, NC
16,719
occupants, up from 28.2 percent in 2014 to the highest level in the last decade, according to an ATTOM Data Solutions analysis. That reflects the reality for Whitmire, one of the mid-sized single family aggregators still plugging away, albeit with a shifting strategy that corresponds to market opportunity. “We do all value-add acquisitions. We do single family and multi-family in secondary and tertiary markets,” he said, noting that the opportunity for buying SFR in primary markets like Atlanta has largely dried up. “We can’t buy cash flow in Atlanta. We can in Alabama. … The opportunity has changed. So we went back to doing what we did before the recession, which is cash flow.
“A lot of your big guys are still buying in your primary and secondary markets,” added Whitmire, who said his company owns about 200 investment homes in Alabama. “A-class assets at a 5 percent cap rate. That’s an OK strategy if you have a lot of capital to deploy and you are OK with lower returns … that’s not OK with us. We need to get a higher return.” While Whitmire has shifted his SFR aggregation strategy by moving into secondary and tertiary markets beyond his backyard, other mid-sized operators are staying in their backyard but adjusting their acquisition and exit strategies. Sticking to Southern California “We’re acquiring (but) it’s slowed down,” said Jeff Pintar, founding partner and
We’re only flipping in LA, Orange County and San Diego counties. In the Inland Empire we’re buying rentals. It’s not really a distressed play like it was four years ago. It’s a value-add play .”
Jeff Pintar CEO, Pintar Investment Company in Southern California
ATTOM Data Solutions • P7
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